Just Transition: What lies ahead for coal-dependent towns in India?

Introduction

• Many coal mining sites across India are currently being shut down in various parts of India due to factors like unprofitability.
• Some of these mining sites are either fully exploited or their remaining reserve is not economically viable for exploitation.
• The main threat which arises from this problem is the impact on the economy of the region.
• These coal dependent economies in these towns have been impacted due to closure of coal seams and reduction in productivity of coal.
• A recent study reveals that there is a constant plan to phase out production of coal in these towns in next 10-20 years.
• Hence, there is a need to adopt strategies in order to go for a just transition from coal based economy to renewable energy based economy in India.

Reasons behind dying coal towns of India

• Depleting coal reserves: Coal reserves in some of these towns in India are depleting rapidly which has led to closure of coal mines.
  • Mono-industry coal towns like Dhanbad or Korba which are solely dependent upon coal industry are on verge of losing their economic status due to this reason.

• Reducing Carbon footprints: Different national and international treaties and organizations have emphasized for reduction of carbon footprints.
  • Treaties like Paris Climate Deal which aims to bring down global temperature by 2ºC of pre-industrial level by cutting emission of global warming gases have been well accepted around the globe.
  • Coal has been used around the globe for generating electricity, Metal Production, Cement Production, Gasification, Liquefaction and Chemical Production.
  • In order to reduce dependence of coal alternate sources of energy are being envisaged across different sectors.
  • In most of the developed countries of the world it has been replaced sustainably which has led to reduction in demand of coal.

• Development of renewable sources of energy: Solar energy, Wind energy, Hydro energy, Tidal energy, geothermal energy and Biomass energy have developed new sources of energy which aims to reduce dependence on fossil fuels such as coal and petroleum.
  • Newbie technologies have envisaged to replace coal with lesser polluting fuels such as natural gas as energy mix with these renewable sources to ensure round the clock power supplies.
  • During COVID-19 lock down, the average Indian coal-fired power plant operated at just 40 percent capacity utilization as cheap renewables were favored on the grid and operated at around half of their intended plant load factor causing inability to sell much of the electricity they produce.
  • These factors have killed prospects for new coal-fired power plants in India as renewable energy sources are being accepted widely.

How will India achieve just transition from coal based economy?

‘Just Transition’

• It is a concept which envisages for transition to a clean energy economy in such a way that it must be fair and just to the affected communities and the environment.
• Although, this concept of just transition found a mention in the preamble of the Paris Agreement in 2015 as well but it is yet to gain traction in a coal-dependent country such as India.
• India has been vying to phase-out coal-based power in 20-30 years to avoid catastrophic impacts of climate change.
• It will help to build a sustainable and resilient economy in the coal-dependent regions. Following are the ways by which India can go for ‘Just Transition’ of coal based economy:
• Human Capital Formation in coal mining areas: Coal mining areas have lost their agricultural lands which were acquired few decades ago for coal mining. Hence, promotion of agricultural development is not a viable idea.
• Hence, human capital formation is an alternative idea by using government’s schemes such as ‘Skill India mission’ and others.
• Promotion of cottage industries: Promotion of cottage industries in these areas at large scale can be another important step. Khadi and Village Industries Commission (KVIC) can play an important role in it.
• Promotion of ‘Tribal Art’: Most of the coal mining areas in India are located in tribal belt of Gondwana region.
• Promotion of tribal art and architecture can help to create livelihood opportunities in these regions. Agencies such as TRIFED can play an important role in implementing it.
• Using District Mineral Foundation fund for creating jobs: It can be used for prioritising livelihood generation and creating local jobs. There is large scope of improving “community development activities” through the fund.
• Promotion of ‘Tribal Tourism’: Tribal tourist circuits have come out to be a sustainable way of creating livelihood opportunities as well as development of the region. Promotion of tribal tourism will help to provide alternate source of income to coal centric tribal regions of Jharkhand, Odisha and Chhattisgarh

Conclusion:

India has fifth highest reserve of coal in the world and is also the second largest producer of coal. Apart from it, it is also the second largest producer and consumer of coal in the world. If planning for a post-coal future is not done on urgent basis, India’s coal-dependent regions will face major economic and social disruptions in the coming years. India can send a strong signal to the world that it is willing to play a leadership role in climate change by putting just transition at the centre of its climate mitigation plan. It will also help India to march towards sustainable development goals and fulfill its Intended National Domestic Contributions (INDCs). It will also help India to achieve sustainable development goals such as:

• Goal 1 (No Poverty)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Production and Consumption)
• Goal 13 (Climate Action)